1. Duke Energy Ohio Standby Rates Jim Ziolkowski, P.E., Rates Manager September 13, 2012 1

2. 2 Agenda  Definitions  Current Rider GSS  Proposed Rider GSS (filed in Case No. 12-1682-EL-AIR)  Other Items  Questions

3. 3 Definitions  Supplemental Power Service – a service which provides distribution and/or transmission capacity to the customer as well as the energy requirements, which requirements may be provided by the Company or a Certified Supplier, for use by a customer’s facility in addition to the electric power which the customer ordinarily generates on its own.

4. 4 Definitions  Maintenance Power Service – a contracted service which provides distribution and/or transmission capacity as well as the energy requirements, which requirements may be provided by the Company or a Certified Supplier, for use by the customer during scheduled outages or interruptions of the customer’s own generation.  Backup Power Service – a contracted service which provides distribution and/or transmission capacity as well as the energy requirements, which requirements may be provided by the Company or a Certified Supplier, for use by the customer to replace energy generated by the customer’s own generation during an unscheduled outage or other interruption on the part of the customer’s own generation.

5. 5 Rider GSS 8 MW 14 MW 20 MW Days Of Month Backup Period Rider GSS Demand Example Supplemental kW Contract kW Backup kW Contract kW = 6,000 kW (Fixed kW, billed regardless of actual demand) Supplemental kW = 8,000 kW (Peak excluding Backup and Maintenance periods Backup kW = 14,000–8000 = 6,000 kW (Peak during Backup period minus Supplemental kW)

6. 6 Rider GSS (Current Tariff)  Rider GSS (Generation Support Service), P.U.C.O. Electric No. 19, Sheet No. 98.8.  Applies to any non-residential customer having generation equipment capable of supplying all or part of its power requirements for other than emergency purposes and who requires supplemental, maintenance, or backup power.  Supplemental, maintenance, and backup power may be provided by a CRES provider.

7. 7 Capacity Reservation Charge  Monthly Administrative Charge - $75  Distribution Reservation Charge  Charges vary according to base rate schedule (Rate DS, DP, TS)  Transmission Reservation Charge  Rates vary according to base rate schedule (Rate DS, DP, TS). Rates obtained from Rider BTR (Base Transmission Rider).  Charges are based on the greater of the contracted demand for Maintenance Power or Backup Power, including interruptible Backup Power.

8. 8 Supplemental Power  Billed under standard tariff (Rate DS, Rate DP, or Rate TS)  All power not specifically identified and contracted by the customer as Maintenance Power or Backup Power is Supplemental Power.

9. 9 Backup Power  Notification:  The customer must notify the Company of the outage within one hour of the beginning and end of the outage.  Following the outage, the customer must send the dates and times of the outage in written form.  The customer may elect Interruptible Backup Service  One hour notice  Penalty for non-compliance  Billing of backup service:  No demand ratchet  Generation-related demand charges prorated by the number of days that backup power was taken.  Distribution, transmission, and ancillary services charges are replaced by the monthly Capacity Reservation charges.  For Interruptible Backup Service, generation-related demand charges reduced by fifty percent.

10. 10 Maintenance Power  The customer must submit Maintenance Power requirements for each generating unit at least sixty (60) days prior to the beginning of each calendar year.  For each generating unit, the customer may elect Maintenance Power Service for up to thirty (30) days in any twelve month period with no more than two (2) days consecutively during the summer billing periods of June through September and those must be during the Company’s off-peak periods.  Billing is similar to Backup Power, but generation-related demand charges are reduced by fifty percent.

11. 11 Rider GSS (Proposed Tariff)  The proposed tariff sheet is Rider GSS (Generation Support Service), P.U.C.O. Electric No. 19, Sheet No. 98.9.  The Company proposed changes in Case No. 12-1682-EL-AIR that simplify Rider GSS.  Changes include:  The amount of contracted maintenance power is equal to the amount of contracted backup power.  The contracted amount of power may be less than the capacity of the generation equipment.  The distribution and transmission charges point to other tariff sheets. They are not specifically listed in Rider GSS.  The tariff clarifies that demand charges will be based on the contracted kW with daily proration.  Case No. 12-1682-EL-AIR was filed a couple of months ago, and the case is pending.

12. 12 Other Items  Five-year service agreement  The customer must adhere to the Company’s interconnection requirements  Changes in contracted demand levels may be requested by the customer once each year at the contract anniversary date  Manual billing process – bills calculated outside of the Company’s normal billing system.  Note: CRES prices may be structured as per-kWh charges with no demand charges. The major benefit of Rider GSS is the daily proration of generation-related demand charges during given month. Shopping customers who receive generation service from a CRES under a per-kWh price structure will not receive the same benefits under Rider GSS as a customer who is subject to generation demand charges.

13. 13 Standby Power – Rider GSS Questions?